The correct option is III, I AND II.
The first sentence is a quotation, the second sentences is a paraphrase while the third statement is an attribution. A quotation refers to direct importation of the words said by another person, such words are usually placed inside quotation marks.
Answer:
The excerpt is written mainly in the present tense, from a third-person point of view.
I would say that the best theme to address those key points listed, would be: A. Feeling hopeless is unreasonable when faced with challenges. In other words, we shouldn't feel as if the end of that world is at hand, just because challenges and tests come our way. That is to be expected. Hope that helps.